KEY STEPS

Kyoto Protocol to the United Nations Framework Convention on Climate Change

The Parties to this Protocol,

Being Parties to the United Nations Framework Convention on Climate Change, hereinafter referred
to as "the Convention",

In pursuit of the ultimate objective of the Convention as stated in its Article 2,

Recalling the provisions of the Convention,

Being guided by Article 3 of the Convention,

Pursuant to the Berlin Mandate adopted by decision 1/CP.1 of the

Conference of the Parties to the Convention at its first session,

Have agreed as follows:

Article 1

For the purposes of this Protocol, the definitions contained in Article 1 of the Convention shall apply. In
addition:

1. "Conference of the Parties" means the Conference of the Parties to the Convention.

2. "Convention" means the United Nations Framework Convention on Climate Change, adopted in New
York on 9 May 1992.

3. "Intergovernmental Panel on Climate Change" means the Intergovernmental Panel on Climate
Change established in 1988 jointly by the World Meteorological Organization and the United Nations
Environment Programme.

4. "Montreal Protocol" means the Montreal Protocol on Substances that Deplete the Ozone Layer,
adopted in Montreal on 16 September 1987 and as subsequently adjusted and amended.

6. "Party" means, unless the context otherwise indicates, a Party to this Protocol.

7. "Party included in Annex I" means a Party included in Annex I to the Convention, as may be
amended, or a Party which has made a notification under Article 4, paragraph 2(g), of the Convention.

Article 2

1. Each Party included in Annex I, in achieving its quantified emission limitation and reduction
commitments under Article 3, in order to promote sustainable development, shall:

(a) Implement and/or further elaborate policies and measures in accordance with its national circumstances,
such as:

(i) Enhancement of energy efficiency in relevant sectors of the national economy;

(ii) Protection and enhancement of sinks and reservoirs of greenhouse gases not controlled by the
Montreal Protocol, taking into account its commitments under relevant international environmental
agreements; promotion of sustainable forest management practices, afforestation and reforestation;

(iii) Promotion of sustainable forms of agriculture in light of climate change considerations;

(iv) Research on, and promotion, development and increased use of, new and renewable forms of energy, of
carbon dioxide sequestration technologies and of advanced and innovative environmentally sound
technologies;

(v) Progressive reduction or phasing out of market imperfections, fiscal incentives, tax and duty
exemptions and subsidies in all greenhouse gas emitting sectors that run counter to the objective of
the Convention and application of market instruments;

(vi) Encouragement of appropriate reforms in relevant sectors aimed at promoting policies and measures
which limit or reduce emissions of greenhouse gases not controlled by the Montreal Protocol;

(vii) Measures to limit and/or reduce emissions of greenhouse gases not controlled by the Montreal Protocol
in the transport sector;

(viii) Limitation and/or reduction of methane emissions through recovery and use in waste management,
as well as in the production, transport and distribution of energy;

(b) Cooperate with other such Parties to enhance the individual and combined effectiveness of their
policies and measures adopted under this Article, pursuant to Article 4, paragraph 2(e)(i), of the
Convention. To this end, these Parties shall take steps to share their experience and exchange information
on such policies and measures, including developing ways of improving their comparability, transparency and
effectiveness. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall,
at its first session or as soon as practicable thereafter, consider ways to facilitate such
cooperation, taking into account all relevant information.

2. The Parties included in Annex I shall pursue limitation or reduction of emissions of greenhouse gases
not controlled by the Montreal Protocol from aviation and marine bunker fuels, working through the
International Civil Aviation Organization and the International Maritime Organization, respectively.

3. The Parties included in Annex I shall strive to implement policies and measures under this Article in
such a way as to minimize adverse effects, including the adverse effects of climate change, effects on
international trade, and social, environmental and economic impacts on other Parties, especially
developing country Parties and in particular those identified in Article 4, paragraphs 8 and 9, of the
Convention, taking into account Article 3 of the Convention. The Conference of the Parties serving as the
meeting of the Parties to this Protocol may take further action, as appropriate, to promote the
implementation of the provisions of this paragraph.

4. The Conference of the Parties serving as the meeting of the Parties to this Protocol, if it decides
that it would be beneficial to coordinate any of the policies and measures in paragraph 1(a) above, taking
into account different national circumstances and potential effects, shall consider ways and means to
elaborate the coordination of such policies and measures.

Article 3

1. The Parties included in Annex I shall, individually or jointly, ensure that their
aggregate anthropogenic carbon dioxide equivalent emissions of the greenhouse gases listed
in Annex A do not exceed their assigned amounts, calculated pursuant to their quantified emission
limitation and reduction commitments inscribed in Annex B and in accordance with the provisions of this
Article, with a view to reducing their overall emissions of such gases by at least 5 per cent below 1990
levels in the commitment period 2008 to 2012.

2. Each Party included in Annex I shall, by 2005, have made demonstrable progress in achieving its
commitments under this Protocol.

3. The net changes in greenhouse gas emissions by sources and removals by sinks resulting from direct
human-induced land-use change and forestry activities, limited to afforestation, reforestation and
deforestation since 1990, measured as verifiable changes in carbon stocks in each commitment period, shall
be used to meet the commitments under this Article of each Party included in Annex I. The greenhouse gas
emissions by sources and removals by sinks associated with those activities shall be reported in a
transparent and verifiable manner and reviewed in accordance with Articles 7 and 8.

4. Prior to the first session of the Conference of the Parties serving as the meeting of the Parties to
this Protocol, each Party included in Annex I shall provide, for consideration by the Subsidiary Body for
Scientific and Technological Advice, data to establish its level of carbon stocks in 1990 and to enable an
estimate to be made of its changes in carbon stocks in subsequent years. The Conference of the Parties
serving as the meeting of the Parties to this Protocol shall, at its first session or as soon as
practicable thereafter, decide upon modalities, rules and guidelines as to how, and which, additional
human-induced activities related to changes in greenhouse gas emissions by sources and removals by sinks in
the agricultural soils and the land-use change and forestry categories shall be added to, or
subtracted from, the assigned amounts for Parties included in Annex I, taking into account uncertainties,
transparency in reporting, verifiability, the methodological work of the Intergovernmental Panel on Climate
Change, the advice provided by the Subsidiary Body for Scientific and Technological Advice in accordance
with Article 5 and the decisions of the Conference of the Parties. Such a decision shall apply in the
second and subsequent commitment periods. A Party may choose to apply such a decision on these additional
human-induced activities for its first commitment period, provided that these activities have taken place
since 1990.

5. The Parties included in Annex I undergoing the process of transition to a market economy whose base year
or period was established pursuant to decision 9/CP.2 of the Conference of the Parties at its second
session shall use that base year or period for the implementation of their commitments under this Article.
Any other Party included in Annex I undergoing the process of transition to a market economy which has
not yet submitted its first national communication under Article 12 of the Convention may also notify the
Conference of the Parties serving as the meeting of the Parties to this Protocol that it intends to use an
historical base year or period other than 1990 for the implementation of its commitments under this
Article. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall decide
on the acceptance of such notification.

6. Taking into account Article 4, paragraph 6, of the Convention, in the implementation of their
commitments under this Protocol other than those under this Article, a certain degree of flexibility shall
be allowed by the Conference of the Parties serving as the meeting of the Parties to this Protocol to the
Parties included in Annex I undergoing the process of transition to a market economy.

7. In the first quantified emission limitation and reduction commitment period, from 2008 to 2012, the
assigned amount for each Party included in Annex I shall be equal to the percentage inscribed for it in
Annex B of its aggregate anthropogenic carbon dioxide equivalent emissions of the greenhouse gases listed
in Annex A in 1990, or the base year or period determined in accordance with paragraph 5 above, multiplied
by five. Those Parties included in Annex I for whom land-use change and forestry constituted a net source
of greenhouse gas emissions in 1990 shall include in their 1990 emissions base year or period
the aggregate anthropogenic carbon dioxide equivalent emissions by sources minus removals by sinks in
1990 from land-use change for the purposes of calculating their assigned amount.

8. Any Party included in Annex I may use 1995 as its base year for hydrofluorocarbons, perfluorocarbons and
sulphur hexafluoride, for the purposes of the calculation referred to in paragraph 7 above.

9. Commitments for subsequent periods for Parties included in Annex I shall be established in amendments to
Annex B to this Protocol, which shall be adopted in accordance with the provisions of Article 21, paragraph
7. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall initiate the
consideration of such commitments at least seven years before the end of the first commitment period
referred to in paragraph 1 above.

10. Any emission reduction units, or any part of an assigned amount, which a Party acquires from another
Party in accordance with the provisions of Article 6 or of Article 17 shall be added to the assigned amount
for the acquiring Party.

11. Any emission reduction units, or any part of an assigned amount, which a Party transfers to another
Party in accordance with the provisions of Article 6 or of Article 17 shall be subtracted from the assigned
amount for the transferring Party.

12. Any certified emission reductions which a Party acquires from another Party in accordance with the
provisions of Article 12 shall be added to the assigned amount for the acquiring Party.

13. If the emissions of a Party included in Annex I in a commitment period are less than its assigned
amount under this Article, this difference shall, on request of that Party, be added to the assigned amount
for that Party for subsequent commitment periods.

14. Each Party included in Annex I shall strive to implement the commitments mentioned in paragraph 1 above
in such a way as to minimize adverse social, environmental and economic impacts on developing country
Parties, particularly those identified in Article 4, paragraphs 8 and 9, of the Convention. In line with
relevant decisions of the Conference of the Parties on the implementation of those paragraphs, the
Conference of the Parties serving as the meeting of the Parties to this Protocol shall, at its first
session, consider what actions are necessary to minimize the adverse effects of climate change and/or the
impacts of response measures on Parties referred to in those paragraphs. Among the issues to be
considered shall be the establishment of funding, insurance and transfer of technology.

Article 4

1. Any Parties included in Annex I that have reached an agreement to fulfil their commitments under Article
3 jointly, shall be deemed to have met those commitments provided that their total combined aggregate
anthropogenic carbon dioxide equivalent emissions of the greenhouse gases listed in Annex A do not exceed
their assigned amounts calculated pursuant to their quantified emission limitation and reduction
commitments inscribed in Annex B and in accordance with the provisions of Article 3. The respective
emission level allocated to each of the Parties to the agreement shall be set out in that agreement.

2. The Parties to any such agreement shall notify the secretariat of the terms of the agreement on the date
of deposit of their instruments of ratification, acceptance or approval of this Protocol, or accession
thereto. The secretariat shall in turn inform the Parties and signatories to the Convention of the terms of
the agreement.

3. Any such agreement shall remain in operation for the duration of the commitment period specified in
Article 3, paragraph 7.

4. If Parties acting jointly do so in the framework of, and together with, a regional economic integration
organization, any alteration in the composition of the organization after adoption of this Protocol shall
not affect existing commitments under this Protocol. Any alteration in the composition of the organization
shall only apply for the purposes of those commitments under Article 3 that are adopted subsequent to that
alteration.

5. In the event of failure by the Parties to such an agreement to achieve their total combined level of
emission reductions, each Party to that agreement shall be responsible for its own level of emissions
set out in the agreement.

6. If Parties acting jointly do so in the framework of, and together with, a regional economic integration
organization which is itself a Party to this Protocol, each member State of that regional economic
integration organization individually, and together with the regional economic integration organization
acting in accordance with Article 24, shall, in the event of failure to achieve the total combined level of
emission reductions, be responsible for its level of emissions as notified in accordance with this Article.

Article 5

1. Each Party included in Annex I shall have in place, no later than one year prior to the start of the
first commitment period, a national system for the estimation of anthropogenic emissions by sources and
removals by sinks of all greenhouse gases not controlled by the Montreal Protocol. Guidelines for such
national systems, which shall incorporate the methodologies specified in paragraph 2 below, shall be
decided upon by the Conference of the Parties serving as the meeting of the Parties to this Protocol
at its first session.

2. Methodologies for estimating anthropogenic emissions by sources and removals by sinks of all greenhouse
gases not controlled by the Montreal Protocol shall be those accepted by the Intergovernmental Panel on
Climate Change and agreed upon by the Conference of the Parties at its third session. Where such
methodologies are not used, appropriate adjustments shall be applied according to methodologies agreed upon
by the Conference of the Parties serving as the meeting of the Parties to this Protocol at its first
session. Based on the work of, inter alia, the Intergovernmental Panel on Climate Change and
advice provided by the Subsidiary Body for Scientific and Technological Advice, the Conference of the
Parties serving as the meeting of the Parties to this Protocol shall regularly review and, as
appropriate, revise such methodologies and adjustments, taking fully into account any
relevant decisions by the Conference of the Parties. Any revision to methodologies or adjustments
shall be used only for the purposes of ascertaining compliance with commitments under Article 3 in respect
of any commitment period adopted subsequent to that revision.

3. The global warming potentials used to calculate the carbon dioxide equivalence of anthropogenic
emissions by sources and removals by sinks of greenhouse gases listed in Annex A shall be those
accepted by the Intergovernmental Panel on Climate Change and agreed upon by the Conference of the Parties
at its third session. Based on the work of, inter alia, the Intergovernmental Panel on Climate
Change and advice provided by the Subsidiary Body for Scientific and Technological Advice, the Conference
of the Parties serving as the meeting of the Parties to this Protocol shall regularly review and, as
appropriate, revise the global warming potential of each such greenhouse gas, taking fully into account any
relevant decisions by the Conference of the Parties. Any revision to a global warming potential shall apply
only to commitments under Article 3 in respect of any commitment period adopted subsequent to that
revision.

Article 6

1. For the purpose of meeting its commitments under Article 3, any Party included in Annex I may transfer
to, or acquire from, any other such Party emission reduction units resulting from projects aimed at
reducing anthropogenic emissions by sources or enhancing anthropogenic removals by sinks of greenhouse
gases in any sector of the economy, provided that:

(a) Any such project has the approval of the Parties involved;

(b) Any such project provides a reduction in emissions by sources, or an enhancement of removals by sinks,
that is additional to any that would otherwise occur;

(c) It does not acquire any emission reduction units if it is not in compliance with its obligations under
Articles 5 and 7; and

(d) The acquisition of emission reduction units shall be supplemental to domestic actions for the purposes
of meeting commitments under Article 3.

2. The Conference of the Parties serving as the meeting of the Parties to this Protocol may, at its first
session or as soon as practicable thereafter, further elaborate guidelines for the implementation of this
Article, including for verification and reporting.

3. A Party included in Annex I may authorize legal entities to participate, under its responsibility, in
actions leading to the generation, transfer or acquisition under this Article of emission reduction units.

4. If a question of implementation by a Party included in Annex I of the requirements referred to in this
Article is identified in accordance with the relevant provisions of Article 8, transfers and acquisitions
of emission reduction units may continue to be made after the question has been identified, provided
that any such units may not be used by a Party to meet its commitments under Article 3 until any issue of
compliance is resolved.

Article 7

1. Each Party included in Annex I shall incorporate in its annual inventory of anthropogenic emissions by
sources and removals by sinks of greenhouse gases not controlled by the Montreal Protocol, submitted
in accordance with the relevant decisions of the Conference of the Parties, the necessary supplementary
information for the purposes of ensuring compliance with Article 3, to be determined in accordance with
paragraph 4 below.

2. Each Party included in Annex I shall incorporate in its national communication, submitted under Article
12 of the Convention, the supplementary information necessary to demonstrate compliance with its
commitments under this Protocol, to be determined in accordance with paragraph 4 below.

3. Each Party included in Annex I shall submit the information required under paragraph 1 above annually,
beginning with the first inventory due under the Convention for the first year of the commitment period
after this Protocol has entered into force for that Party. Each such Party shall submit the
information required under paragraph 2 above as part of the first national communication due under the
Convention after this Protocol has entered into force for it and after the adoption of guidelines as
provided for in paragraph 4 below. The frequency of subsequent submission of information required
under this Article shall be determined by the Conference of the Parties serving as the meeting of the
Parties to this Protocol, taking into account any timetable for the submission of national communications
decided upon by the Conference of the Parties.

4. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall adopt at its
first session, and review periodically thereafter, guidelines for the preparation of the information
required under this Article, taking into account guidelines for the preparation of national communications
by Parties included in Annex I adopted by the Conference of the Parties. The Conference of the Parties
serving as the meeting of the Parties to this Protocol shall also, prior to the first commitment period,
decide upon modalities for the accounting of assigned amounts.

Article 8

1. The information submitted under Article 7 by each Party included in Annex I shall be reviewed by expert
review teams pursuant to the relevant decisions of the Conference of the Parties and in accordance with
guidelines adopted for this purpose by the Conference of the Parties serving as the meeting of the Parties
to this Protocol under paragraph 4 below. The information submitted under Article 7, paragraph 1, by each
Party included in Annex I shall be reviewed as part of the annual compilation and accounting of
emissions inventories and assigned amounts. Additionally, the information submitted under Article 7,
paragraph 2, by each Party included in Annex I shall be reviewed as part of the review of communications.

2. Expert review teams shall be coordinated by the secretariat and shall be composed of experts selected
from those nominated by Parties to the Convention and, as appropriate, by intergovernmental organizations,
in accordance with guidance provided for this purpose by the Conference of the Parties.

3. The review process shall provide a thorough and comprehensive technical assessment of all aspects of the
implementation by a Party of this Protocol. The expert review teams shall prepare a report to the
Conference of the Parties serving as the meeting of the Parties to this Protocol,
assessing the implementation of the commitments of the Party and identifying any potential problems in, and
factors influencing, the fulfilment of commitments. Such reports shall be circulated by the secretariat to
all Parties to the Convention. The secretariat shall list those questions of implementation indicated in
such reports for further consideration by the Conference of the Parties serving as the meeting of the
Parties to this Protocol.

4. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall adopt at its
first session, and review periodically thereafter, guidelines for the review of implementation of this
Protocol by expert review teams taking into account the relevant decisions of the Conference of the
Parties.

5. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, with the
assistance of the Subsidiary Body for Implementation and, as appropriate, the Subsidiary Body for
Scientific and Technological Advice, consider:

(a) The information submitted by Parties under Article 7 and the reports of the expert reviews thereon
conducted under this Article; and

(b) Those questions of implementation listed by the secretariat under paragraph 3 above, as well as any
questions raised by Parties.

6. Pursuant to its consideration of the information referred to in paragraph 5 above, the Conference of the
Parties serving as the meeting of the Parties to this Protocol shall take decisions on any matter required
for the implementation of this Protocol.

Article 9

1. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall periodically
review this Protocol in the light of the best available scientific information and assessments on climate
change and its impacts, as well as relevant technical, social and economic information. Such reviews shall
be coordinated with pertinent reviews under the Convention, in particular those required by Article 4,
paragraph 2(d), and Article 7, paragraph 2(a), of the Convention. Based on these reviews, the Conference of
the Parties serving as the meeting of the Parties to this Protocol shall take appropriate action.

2. The first review shall take place at the second session of the Conference of the Parties serving as the
meeting of the Parties to this Protocol. Further reviews shall take place at regular intervals and in a
timely manner.

Article 10

All Parties, taking into account their common but differentiated responsibilities and their specific
national and regional development priorities, objectives and circumstances, without introducing any new
commitments for Parties not included in Annex I, but reaffirming existing commitments under Article 4,
paragraph 1, of the Convention, and continuing to advance the implementation of these commitments in order
to achieve sustainable development, taking into account Article 4, paragraphs 3, 5 and 7, of the
Convention, shall:

(a) Formulate, where relevant and to the extent possible, cost-effective national and, where appropriate,
regional programmes to improve the quality of local emission factors, activity data and/or models which
reflect the socio-economic conditions of each Party for the preparation and periodic updating of national
inventories of anthropogenic emissions by sources and removals by sinks of all greenhouse gases not
controlled by the Montreal Protocol, using comparable methodologies to be agreed upon by the Conference of
the Parties, and consistent with the guidelines for the preparation of national communications adopted
by the Conference of the Parties;

(i) Such programmes would, interalia, concern the energy, transport and industry sectors
as well as agriculture, forestry and waste management. Furthermore, adaptation technologies and methods for
improving spatial planning would improve adaptation to climate change; and

(ii) Parties included in Annex I shall submit information on action under this Protocol, including national
programmes, in accordance with Article 7; and other Parties shall seek to include in their national
communications, as appropriate, information on programmes which contain measures that the Party believes
contribute to addressing climate change and its adverse impacts, including the abatement of increases in
greenhouse gas emissions, and enhancement of and removals by sinks, capacity building and adaptation
measures;

(c) Cooperate in the promotion of effective modalities for the development, application and diffusion of,
and take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or
access to, environmentally sound technologies, know-how, practices and processes pertinent to climate
change, in particular to developing countries, including the formulation of policies and programmes for the
effective transfer of environmentally sound technologies that are publicly owned or in the public domain
and the creation of an enabling environment for the private sector, to promote and enhance the
transfer of, and access to, environmentally sound technologies;

(d) Cooperate in scientific and technical research and promote the maintenance and the development of
systematic observation systems and development of data archives to reduce uncertainties related to the
climate system, the adverse impacts of climate change and the economic and social consequences of various
response strategies, and promote the development and strengthening of endogenous capacities and
capabilities to participate in international and intergovernmental efforts, programmes and networks on
research and systematic observation, taking into account Article 5 of the Convention;

(e) Cooperate in and promote at the international level, and, where appropriate, using existing bodies, the
development and implementation of education and training programmes, including the strengthening of
national capacity building, in particular human and institutional capacities and the exchange or
secondment of personnel to train experts in this field, in particular for developing countries, and
facilitate at the national level public awareness of, and public access to information on, climate change.
Suitable modalities should be developed to implement these activities through the relevant bodies of
the Convention, taking into account Article 6 of the Convention;

(f) Include in their national communications information on programmes and activities undertaken pursuant
to this Article in accordance with relevant decisions of the Conference of the Parties; and

(g) Give full consideration, in implementing the commitments under this Article, to Article 4,
paragraph 8, of the Convention.

Article 11

1. In the implementation of Article 10, Parties shall take into account the provisions of Article 4,
paragraphs 4, 5, 7, 8 and 9, of the Convention.

2. In the context of the implementation of Article 4, paragraph 1, of the Convention, in accordance with
the provisions of Article 4, paragraph 3, and Article 11 of the Convention, and through the entity or
entities entrusted with the operation of the financial mechanism of the Convention, the developed country
Parties and other developed Parties included in Annex II to the Convention shall:

(a) Provide new and additional financial resources to meet the agreed full costs incurred by developing
country Parties in advancing the implementation of existing commitments under Article 4, paragraph 1(a), of
the Convention that are covered in Article 10, subparagraph (a); and

(b) Also provide such financial resources, including for the transfer of technology, needed by the
developing country Parties to meet the agreed full incremental costs of advancing the implementation of
existing commitments under Article 4, paragraph 1, of the Convention that are covered by Article 10 and
that are agreed between a developing country Party and the international entity or entities referred to in
Article 11 of the Convention, in accordance with that Article.

The implementation of these existing commitments shall take into account the need for adequacy and
predictability in the flow of funds and the importance of appropriate burden sharing among developed
country Parties. The guidance to the entity or entities entrusted with the operation of the financial
mechanism of the Convention in relevant decisions of the Conference of the Parties, including those agreed
before the adoption of this Protocol, shall apply mutatis mutandis to the provisions of this
paragraph.

3. The developed country Parties and other developed Parties in Annex II to the Convention may also
provide, and developing country Parties avail themselves of, financial resources for the implementation of
Article 10, through bilateral, regional and other multilateral channels.

Article 12

1. A clean development mechanism is hereby defined.

2. The purpose of the clean development mechanism shall be to assist Parties not included in Annex I in
achieving sustainable development and in contributing to the ultimate objective of the Convention, and to
assist Parties included in Annex I in achieving compliance with their quantified emission limitation
and reduction commitments under Article 3.

3. Under the clean development mechanism:

(a) Parties not included in Annex I will benefit from project activities resulting in certified emission
reductions; and

(b) Parties included in Annex I may use the certified emission reductions accruing from such project
activities to contribute to compliance with part of their quantified emission limitation and reduction
commitments under Article 3, as determined by the Conference of the Parties serving as the meeting of
the Parties to this Protocol.

4. The clean development mechanism shall be subject to the authority and guidance of the Conference of
the Parties serving as the meeting of the Parties to this Protocol and be supervised by an executive board
of the clean development mechanism.

5. Emission reductions resulting from each project activity shall be certified by operational entities to
be designated by the Conference of the Parties serving as the meeting of the Parties to this Protocol,
on the basis of:

(a) Voluntary participation approved by each Party involved;

(b) Real, measurable, and long-term benefits related to the mitigation of climate change; and

(c) Reductions in emissions that are additional to any that would occur in the absence of the certified
project activity.

6. The clean development mechanism shall assist in arranging funding of certified project activities
as necessary.

7. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, at its first
session, elaborate modalities and procedures with the objective of ensuring transparency, efficiency and
accountability through independent auditing and verification of project activities.

8. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall ensure that a
share of the proceeds from certified project activities is used to cover administrative expenses as well as
to assist developing country Parties that are particularly vulnerable to the adverse effects of climate
change to meet the costs of adaptation.

9. Participation under the clean development mechanism, including in activities mentioned in paragraph
3(a) above and in the acquisition of certified emission reductions, may involve private and/or public
entities, and is to be subject to whatever guidance may be provided by the executive board of the clean
development mechanism.

10. Certified emission reductions obtained during the period from the year 2000 up to the beginning of the
first commitment period can be used to assist in achieving compliance in the first commitment period.

Article 13

1. The Conference of the Parties, the supreme body of the Convention, shall serve as the meeting of the
Parties to this Protocol.

2. Parties to the Convention that are not Parties to this Protocol may participate as observers in the
proceedings of any session of the Conference of the Parties serving as the meeting of the Parties to this
Protocol. When the Conference of the Parties serves as the meeting of the Parties to this Protocol,
decisions under this Protocol shall be taken only by those that are Parties to this Protocol.

3. When the Conference of the Parties serves as the meeting of the Parties to this Protocol, any member of
the Bureau of the Conference of the Parties representing a Party to the Convention but, at that time, not a
Party to this Protocol, shall be replaced by an additional member to be elected by and from amongst
the Parties to this Protocol.

4. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall keep under
regular review the implementation of this Protocol and shall make, within its mandate, the decisions
necessary to promote its effective implementation. It shall perform the functions assigned to it by
this Protocol and shall:

(a) Assess, on the basis of all information made available to it in accordance with the provisions of this
Protocol, the implementation of this Protocol by the Parties, the overall effects of the measures taken
pursuant to this Protocol, in particular environmental, economic and social effects as well as their
cumulative impacts and the extent to which progress towards the objective of the Convention is being
achieved;

(b) Periodically examine the obligations of the Parties under this Protocol, giving due consideration to
any reviews required by Article 4, paragraph 2(d), and Article 7, paragraph 2, of the Convention, in the
light of the objective of the Convention, the experience gained in its implementation and the evolution of
scientific and technological knowledge, and in this respect consider and adopt regular reports on the
implementation of this Protocol;

(c) Promote and facilitate the exchange of information on measures adopted by the Parties to address
climate change and its effects, taking into account the differing circumstances, responsibilities and
capabilities of the Parties and their respective commitments under this Protocol;

(d) Facilitate, at the request of two or more Parties, the coordination of measures adopted by them to
address climate change and its effects, taking into account the differing circumstances, responsibilities
and capabilities of the Parties and their respective commitments under this Protocol;

(e) Promote and guide, in accordance with the objective of the Convention and the provisions of this
Protocol, and taking fully into account the relevant decisions by the Conference of the Parties, the
development and periodic refinement of comparable methodologies for the effective implementation of this
Protocol, to be agreed on by the Conference of the Parties serving as the meeting of the Parties to this
Protocol;

(f) Make recommendations on any matters necessary for the implementation of this Protocol;

(g) Seek to mobilize additional financial resources in accordance with

Article 11, paragraph 2;

(h) Establish such subsidiary bodies as are deemed necessary for the implementation of this Protocol;

(i) Seek and utilize, where appropriate, the services and cooperation of, and information provided by,
competent international organizations and intergovernmental and non-governmental bodies; and

(j) Exercise such other functions as may be required for the implementation of this Protocol, and
consider any assignment resulting from a decision by the Conference of the Parties.

5. The rules of procedure of the Conference of the Parties and financial procedures applied under the
Convention shall be applied mutatis mutandis under this Protocol, except as may be otherwise
decided by consensus by the Conference of the Parties serving as the meeting of the Parties to this
Protocol.

6. The first session of the Conference of the Parties serving as the meeting of the Parties to this
Protocol shall be convened by the secretariat in conjunction with the first session of the Conference of
the Parties that is scheduled after the date of the entry into force of this Protocol. Subsequent ordinary
sessions of the Conference of the Parties serving as the meeting of the Parties to this Protocol shall be
held every year and in conjunction with ordinary sessions of the Conference of the Parties, unless
otherwise decided by the Conference of the Parties serving as the meeting of the Parties to this
Protocol.

7. Extraordinary sessions of the Conference of the Parties serving as the meeting of the Parties to this
Protocol shall be held at such other times as may be deemed necessary by the Conference of the Parties
serving as the meeting of the Parties to this Protocol, or at the written request of any Party, provided
that, within six months of the request being communicated to the Parties by the secretariat, it is
supported by at least one third of the Parties.

8. The United Nations, its specialized agencies and the International Atomic Energy

Agency, as well as any State member thereof or observers thereto not party to the Convention, may be
represented at sessions of the Conference of the Parties serving as the meeting of the Parties to this
Protocol as observers. Any body or agency, whether national or international, governmental or
non-governmental, which is qualified in matters covered by this Protocol and which has informed the
secretariat of its wish to be represented at a session of the Conference of the Parties serving as the
meeting of the Parties to this Protocol as an observer, may be so admitted unless at least one third of the
Parties present object. The admission and participation of observers shall be subject to the rules of
procedure, as referred to in paragraph 5 above.

Article 14

1. The secretariat established by Article 8 of the Convention shall serve as the secretariat of this
Protocol.

2. Article 8, paragraph 2, of the Convention on the functions of the secretariat, and

Article 8, paragraph 3, of the Convention on arrangements made for the functioning of the secretariat,
shall apply mutatis mutandis to this Protocol. The secretariat shall, in addition, exercise the
functions assigned to it under this Protocol.

Article 15

1. The Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for
Implementation established by Articles 9 and 10 of the Convention shall serve as, respectively, the
Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation of this
Protocol. The provisions relating to the functioning of these two bodies under the Convention shall apply
mutatis mutandis to this Protocol. Sessions of the meetings of the Subsidiary Body for Scientific
and Technological Advice and the Subsidiary Body for Implementation of this Protocol shall be held in
conjunction with the meetings of, respectively, the Subsidiary Body for Scientific and Technological Advice
and the Subsidiary Body for Implementation of the Convention.

2. Parties to the Convention that are not Parties to this Protocol may participate as observers in the
proceedings of any session of the subsidiary bodies. When the subsidiary bodies serve as the subsidiary
bodies of this Protocol, decisions under this Protocol shall be taken only by those that are Parties to
this Protocol.

3. When the subsidiary bodies established by Articles 9 and 10 of the Convention exercise their
functions with regard to matters concerning this Protocol, any member of the Bureaux of those subsidiary
bodies representing a Party to the Convention but, at that time, not a party to this Protocol, shall be
replaced by an additional member to be elected by and from amongst the Parties to this Protocol.

Article 16

The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, as soon as
practicable, consider the application to this Protocol of, and modify as appropriate, the multilateral
consultative process referred to in Article 13 of the Convention, in the light of any relevant
decisions that may be taken by the Conference of the Parties. Any multilateral consultative process that
may be applied to this Protocol shall operate without prejudice to the procedures and mechanisms
established in accordance with Article 18.

Article 17

The Conference of the Parties shall define the relevant principles, modalities, rules and guidelines,
in particular for verification, reporting and accountability for emissions trading. The Parties
included in Annex B may participate in emissions trading for the purposes of fulfilling their
commitments under Article 3. Any such trading shall be supplemental to domestic actions for the purpose of
meeting quantified emission limitation and reduction commitments under that Article.

Article 18

The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, at its first
session, approve appropriate and effective procedures and mechanisms to determine and to address cases of
non-compliance with the provisions of this Protocol, including through the development of an indicative
list of consequences, taking into account the cause, type, degree and frequency of non-compliance. Any
procedures and mechanisms under this Article entailing binding consequences shall be adopted by means of an
amendment to this Protocol.

Article 19

The provisions of Article 14 of the Convention on settlement of disputes shall apply mutatis
mutandis to this Protocol.

Article 20

1. Any Party may propose amendments to this Protocol.

2. Amendments to this Protocol shall be adopted at an ordinary session of the Conference of the
Parties serving as the meeting of the Parties to this Protocol. The text of any proposed amendment to this
Protocol shall be communicated to the Parties by the secretariat at least six months before the meeting at
which it is proposed for adoption. The secretariat shall also communicate the text of any proposed
amendments to the Parties and signatories to the Convention and, for information, to the Depositary.

3. The Parties shall make every effort to reach agreement on any proposed amendment to this Protocol by
consensus. If all efforts at consensus have been exhausted, and no agreement reached, the amendment shall
as a last resort be adopted by a three-fourths majority vote of the Parties present and voting at the
meeting. The adopted amendment shall be communicated by the secretariat to the Depositary, who shall
circulate it to all Parties for their acceptance.

4. Instruments of acceptance in respect of an amendment shall be deposited with the Depositary. An
amendment adopted in accordance with paragraph 3 above shall enter into force for those Parties having
accepted it on the ninetieth day after the date of receipt by the Depositary of an instrument of acceptance
by at least three fourths of the Parties to this Protocol.

5. The amendment shall enter into force for any other Party on the ninetieth day after the date on which
that Party deposits with the Depositary its instrument of acceptance of the said amendment.

Article 21

1. Annexes to this Protocol shall form an integral part thereof and, unless otherwise expressly provided, a
reference to this Protocol constitutes at the same time a reference to any annexes thereto. Any annexes
adopted after the entry into force of this Protocol shall be restricted to lists, forms and any other
material of a descriptive nature that is of a scientific, technical, procedural or administrative
character.

2. Any Party may make proposals for an annex to this Protocol and may propose amendments to annexes to this
Protocol.

3. Annexes to this Protocol and amendments to annexes to this Protocol shall be adopted at an ordinary
session of the Conference of the Parties serving as the meeting of the Parties to this Protocol. The text
of any proposed annex or amendment to an annex shall be communicated to the Parties by the secretariat at
least six months before the meeting at which it is proposed for adoption. The secretariat shall also
communicate the text of any proposed annex or amendment to an annex to the Parties and signatories to the
Convention and, for information, to the Depositary.

4. The Parties shall make every effort to reach agreement on any proposed annex or amendment to an annex by
consensus. If all efforts at consensus have been exhausted, and no agreement reached, the annex or
amendment to an annex shall as a last resort be adopted by a three-fourths majority vote of the Parties
present and voting at the meeting. The adopted annex or amendment to an annex shall be communicated by the
secretariat to the Depositary, who shall circulate it to all Parties for their acceptance.

5. An annex, or amendment to an annex other than Annex A or B, that has been adopted in accordance with
paragraphs 3 and 4 above shall enter into force for all Parties to this Protocol six months after the date
of the communication by the Depositary to such Parties of the adoption of the annex or adoption of the
amendment to the annex, except for those Parties that have notified the Depositary, in writing, within that
period of their non-acceptance of the annex or amendment to the annex. The annex or amendment to an annex
shall enter into force for Parties which withdraw their notification of non-acceptance on the ninetieth day
after the date on which withdrawal of such notification has been received by the Depositary.

6. If the adoption of an annex or an amendment to an annex involves an amendment to this Protocol, that
annex or amendment to an annex shall not enter into force until such time as the amendment to this
Protocol enters into force.

7. Amendments to Annexes A and B to this Protocol shall be adopted and enter into force in accordance
with the procedure set out in Article 20, provided that any amendment to Annex B shall be adopted only with
the written consent of the Party concerned.

Article 22

1. Each Party shall have one vote, except as provided for in paragraph 2 below.

2. Regional economic integration organizations, in matters within their competence, shall exercise
their right to vote with a number of votes equal to the number of their member States that are Parties to
this Protocol. Such an organization shall not exercise its right to vote if any of its member States
exercises its right, and vice versa.

Article 23

The Secretary-General of the United Nations shall be the Depositary of this Protocol.

Article 24

1. This Protocol shall be open for signature and subject to ratification, acceptance or approval by States
and regional economic integration organizations which are Parties to the Convention. It shall be open for
signature at United Nations Headquarters in New York from

16 March 1998 to 15 March 1999. This Protocol shall be open for accession from the day after the date on
which it is closed for signature. Instruments of ratification, acceptance, approval or accession shall be
deposited with the Depositary.

2. Any regional economic integration organization which becomes a Party to this Protocol without any of its
member States being a Party shall be bound by all the obligations under this Protocol. In the case of such
organizations, one or more of whose member States is a Party to this Protocol, the organization and its
member States shall decide on their respective responsibilities for the performance of their
obligations under this Protocol. In such cases, the organization and the member States shall not be
entitled to exercise rights under this Protocol concurrently.

3. In their instruments of ratification, acceptance, approval or accession, regional economic integration
organizations shall declare the extent of their competence with respect to the matters governed by
this Protocol. These organizations shall also inform the Depositary, who shall in turn inform the Parties,
of any substantial modification in the extent of their competence.

Article 25

1. This Protocol shall enter into force on the ninetieth day after the date on which not less than 55
Parties to the Convention, incorporating Parties included in Annex I which accounted in total for at least
55 per cent of the total carbon dioxide emissions for 1990 of the Parties included in Annex I, have
deposited their instruments of ratification, acceptance, approval or accession.

2. For the purposes of this Article, "the total carbon dioxide emissions for 1990 of the Parties
included in Annex I" means the amount communicated on or before the date of adoption of this Protocol
by the Parties included in Annex I in their first national communications submitted in accordance with
Article 12 of the Convention.

3. For each State or regional economic integration organization that ratifies, accepts or

approves this Protocol or accedes thereto after the conditions set out in paragraph 1 above for entry
into force have been fulfilled, this Protocol shall enter into force on the ninetieth day following the
date of deposit of its instrument of ratification, acceptance, approval or accession.

4. For the purposes of this Article, any instrument deposited by a regional economic integration
organization shall not be counted as additional to those deposited by States members of the
organization.

Article 26

No reservations may be made to this Protocol.

Article 27

1. At any time after three years from the date on which this Protocol has entered into force for a Party,
that Party may withdraw from this Protocol by giving written notification to the Depositary.

2. Any such withdrawal shall take effect upon expiry of one year from the date of receipt by the Depositary
of the notification of withdrawal, or on such later date as may be specified in the notification of
withdrawal.

3. Any Party that withdraws from the Convention shall be considered as also having withdrawn from this
Protocol.

Article 28

The original of this Protocol, of which the Arabic, Chinese, English, French, Russian and Spanish texts are
equally authentic, shall be deposited with the Secretary-General of the United Nations.

DONE at Kyoto this eleventh day of December one thousand nine hundred and ninety-seven.

IN WITNESS WHEREOF the undersigned, being duly authorized to that effect, have affixed
their signatures to this Protocol on the dates indicated.

Annex A

Greenhouse gases

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulphur hexafluoride (SF6)

Sectors/source categories

Energy

Fuel combustion

Energy industries

Manufacturing industries and construction

Transport

Other sectors

Other

Fugitive emissions from fuels

Solid fuels

Oil and natural gas

Other

Industrial processes

Mineral products

Chemical industry

Metal production

Other production

Production of halocarbons and sulphur hexafluoride

Consumption of halocarbons and sulphur hexafluoride

Other

Solvent and other product use

Agriculture

Enteric fermentation

Manure management

Rice cultivation

Agricultural soils

Prescribed burning of savannas

Field burning of agricultural residues

Other

Waste

Solid waste disposal on land

Wastewater handling

Waste incineration

Other

Annex B

PartyQuantified emission limitation or

reduction commitment

(percentage of base year or period)

Australia 108

Austria 92

Belgium 92

Bulgaria* 92

Canada 94

Croatia* 95

Czech Republic* 92

Denmark 92

Estonia* 92

European Community 92

Finland 92

France 92

Germany 92

Greece 92

Hungary* 94

Iceland 110

Ireland 92

Italy 92

Japan 94

Latvia* 92

Liechtenstein 92

Lithuania* 92

Luxembourg 92

Monaco 92

Netherlands 92

New Zealand 100

Norway 101

Poland* 94

Portugal 92

Romania* 92

Russian Federation* 100

Slovakia* 92

Slovenia* 92

Spain 92

Sweden 92

Switzerland 92

Ukraine* 100

United Kingdom of Great Britain and Northern Ireland 92

United States of America 93

* Countries that are undergoing the process of transition to a market economy.